Types of Risk

I can describe types of risk and explain ways to handle risk

Risk

Risk is an uncertainty concerning the occurrence of loss

http://daniellalevitt.com/ready-setrisk-press-release/

Economic Risk

A type of risk that results in financial loss

Example- Someone investing money into something that might not work or benefit the company.

http://www.agcs.allianz.com/about-us/news/companies-concerned-about-economic-risks-and-business-interruption/

Non-Economic Risk

Non- Economic risk is a risk that may result in the embarrassment or inconvenience without financial impact.

Example- Loss of someone in your family.

http://leadershiponramp.com/blog/

Pure Risk

A type of risk that is a threat loss without an opportunity or gain

Example- A deer eating your crops.

http://www.purdue.edu/uns/html4ever/2004/041101.Rhodes.crops.html

Speculative Risk

A type of risk that offers the chance to gain experience or loss

Example- Investing in a product not knowing whether it will make money or not.

http://riovistachurch.com/sermon-gain-or-loss/

Controllable Risk

A type of risk that occurs when conditions can be controlled to lessen the chance of harm.

Example- Living a seditary lifestyle.

http://www.uky.edu/~hadleyr/downloads/CAD/sld009.htm

Uncontrollable risk

A type of risk that cannot be controlled or reduced by actions.

Example- Having a heart attack

http://www.lifemartini.com/uncontrollable-risk-factors-for-heart-disease/

Insurable risk

A type of risk that meets the criteria of an insurance company for coverage.

Example- House getting flood damage and insurance company gets involved in building your house back.

http://www.rstreet.org/policy-study/government-sources-of-systemic-insurable-risk/

Uninsurable risk

A type of risk that the possible amount of loss is simply upredictable.

Example- A hurricane hitting your hometown and destroying homes.

http://www.theguardian.com/money/2008/jun/18/homeinsurance.insurance

Example of a risk

Someone investing money into something that might not work or benefit the company.

Ways that a Business can manage risk

1.Avoid, keep your accounting records up to date and watch for significant varations from budget.

2. Tansfer, allow someone else to assume the risk.

3. Insur, purchasing insurance to cover risk

4. Assume, finishing an activity and accepting full responsibility

Austin Parks